Human Resource Management PDF

2.1. ROLE OF HUMAN RESOURCE MANAGEMENT - Critical for any business -- especially tertiary and quaternary sectors HUMAN RESOURCE MANAGEMENT - The process of managing the personnel of the firm to ensure that the firm meets its objectives, including control and management of: - Terms and co...

2.1. ROLE OF HUMAN RESOURCE MANAGEMENT - Critical for any business -- especially tertiary and quaternary sectors HUMAN RESOURCE MANAGEMENT - The process of managing the personnel of the firm to ensure that the firm meets its objectives, including control and management of: - Terms and conditions of employment, recruitment and training, motivation, wage bargaining, pensions, manpower planning FACTORS INFLUENCING HR PLANNING - external FACTORS INFLUENCING HR PLANNING -- internal  HUMAN RESOURCE PLANNING - The people are at the heart of each company - It's the workforce that produces goods and services, not the machines - The number of employees and their required skill levels vary with changing demand patterns and a dynamic external environment - The success of a firm is determined by the ability to plan workforce requirements - It takes time to recruit and train the right people, so firms forecast their future requirements, which is the basis of human resource planning (workforce planning) KEY TERMS - Demographic changes -- shifts in demographic factors (birth/death rates, ethnicities, religion, education levels) - Labor mobility -- the ability of workers to move occupationally or geographically - Immigration -- international movement of people seeking permanent residency in a new country for various reasons CHANGES IN WORK PATTERS, PRACTICES, AND PREFERENCES - Privatization and the move away from public-sector to private-sector employment - Increased migration of potential employees in a country or region or across the globe - Increasing participation of females in the workforce - Changing educational opportunities - Increasing urbanization and the consequent rise in stress levels - An aging population and increasing average age of the workforce CHANGES IN WORK PRACTICES: WORK PRACTICES IN DECLINE - Traditional work routines are under pressure from employees demanding more flexibility - Full-time work -- working the maximum hours per week as mandated by law (35-40 in the EU, 50-60 in the US), and then some - Permanent contracts -- when employees are hired for positions without a predetermined time limit receive a salary, not an hourly wage WORK PRACTICES ON THE INCREASE - Part-time work -- when employees work less than the full-time weekly maximum hours - Temporary work -- work on a fixed-term contract of a temporary nature, usually through an agency 'subbing', 'covering for someone' - Freelancing -- when a self-employed person works for several different employers at the same time - Teleworking -- work taking place from home or a telecom center, with a core required number of hours to be present at the office - Homeworking -- working from home, with a core required number of hours to be present at the office - Flexi-time -- flexible work schedule allowing workers to adjust the starting and finishing times of their workday, OR - Work involving a set number of hours according to the employee's choosing, with a core required number of hours to be present at the office - Casual Fridays -- wearing a less formal dress on Fridays - Three-day weekend -- squeezing the 40-hour week into four 10-hour working days - The gig economy -- hiring independent workers for short-term commitments HUSTLE CULTURE - A situation where work dominates our time in such an unnatural way that no time is left to live our lives - Career has become such a priority in your life or the environment that you work in that other aspects of being human -- such as hobbies, family time, and self-care -- often take a back seat CHANGES IN WORK PREFERENCES - Career breaks (sabbaticals) -- taking a break to recharge and going back to the same employer after a while - Job share -- share a job to free up time for other activities - Downshifting -- leaving a good position for a new career start in a lower-paid field - Study leave -- granting time off to employee so that he/she can gain a new qualification THE IMPACTS OF INNOVATION ON HR PROCESSES - If a business wants to be innovative, it must put people at the center -- innovations come from people - Recruiting and retaining top talent happens through a supportive and stimulating work environment - HR is rooted in relationship-building - How a business treats its employees matters! - People (employees) are often seen as payroll expense - They are, in fact, the company's biggest asset  POWER DISTANCE - Power distance index (PDI) -- the degree of inequality that exists -- and is accepted -- between people with and without power - A high PDI score indicates that society accepts an unequal, hierarchical distribution of power and that people understand "their place" in the system page24image54750592 REASONS FOR RESISTANCE TO CHANGE - Discomfort -- maintaining the status quo means no friction and no pain - Fear -- the unknown can be intimidating at times - Insufficient reward--more work for inadequate compensation? Hell no! - Lack of job skills -- lifelong learning is an attitude, and many don't have it - Loss of control -- when someone from above insists on change - Mistrust -- basic lack of trust in the upper levels of management - Poor communication -- it hasn't been communicated well why change needs to happen - Poor timing -- there is a time for everything, change included -- don't force it - Prior experience -- traumas stick for a long time - Social support -- group pressure and relationships can increase resistance - watercooler talks matter CHANGE - A normal part of the events that occur in business - Human resource management and workforce planning are about adapting to change HR STRATEGIES - Develop a vision -- realign it, if you must - Forecast and allocate the necessary resources -- change is costly - Involve employees -- they will feel empowered - Regularly communicate -- don't keep people in the dark - Train employees in advance -- especially for impact to be felt directly - Routinely communicate the benefits of the changes - Be aware of the stress that change can cause -- acknowledge stress BUSINESS MANAGEMENT TOOLKIT DATA VISUALIZATION - Charts are an essential part of working with data - A unique way to condense large amounts of data into an easy-to-understand format - Visualization of data can bring out insights to someone looking at the data for the first time, as well as convey findings to others who won't see the raw data - Your choice of chart type will depend on multiple factors: - What are the types of metrics, features, or other variables that you plan on plotting? - Who is the audience you plan on presenting to -- is it just an initial exploration for yourself, or are you delivering to a broader audience?  2.2 ORGANIZATIONAL CHARTS - a formal representation (diagram) of the roles and responsibilities as well as the reporting lines is an organization - the most common way to present an organizational structure - depicts the relationships in terms of who reports to whom down to the lowest levels - Refers to how many levels of responsibility are in a business - Each level indicates a level of seniority in the business - Line manager -- person who has the authority to make decisions and who bears responsibility for the outcomes of those decisions - Staff manager -- a person with the authority to communicate a decision made by the CEO without the responsibility for the decision - Administrative and secretarial staff CHAIN OF COMMAND - The fromal route by which a decision must travel through the organization - Decisions travel from top to bottom (this is why they are referred to as commands) - The PA is outside of the chain of command - Just the bearer of news (don\'t shoot the messenger) SPAN OF CONTROL - Refers to how many subordinates are directly under the authority of a manager and whom managers are responsible for - A situation when a manager gives authority for a particular decision but not the responsibility for the outcome of the decision - The responsibility stays with the manager - More likely to occur when the span of control is wide (DE)CENTRALIZATION - CENTRALIZATION -- a high degree of centralization indicates that all major decision-making is maintained within a small group of managers operating close to the head of the business - Usually associated with businesses that have many levels of hierarchy and narrow spans of control - Delegation rarely happens in such an organization and leadership is more likely to be autocratic - DECENTRALIZATION -- in this organization senior managers may maintain core strategic decisions, but other decision-making authority is delegated to middle managers - Usually associated with businesses that have fewer levels of hierarchy and wider spans of control so that key managers allow greater freedoms to their subordinates - Delegation is more likely to happen in such an organization, and leadership is more likely to be democratic BUREAUCRACY - A term indicating the relative importance of rules and procedures, an administrative system - Originally a term referring to non-elected officials serving in government - An organization that is bureaucratic has many rules and procedures and set ways of doing things - Personal initiative, flexible thinking, and delegation are not expected - Usually associated with businesses that are well established and have been operating for many years - As such, they are more likely to have many levels of hierarchy and require plenty of paperwork - Delegation of not likely - RED TAPE DE-LAYERING - Occurs when a business reduces the levels of hierarchy by removing layers of management - This indicates a reduction in bureaucracy and increases the decision-making capability of middle managers - Usually associated with businesses that are well established and have been operating for many years -- as such, they are more likely to have built up many levels of hierarchy TYPES OF ORGANIZATION CHARTS -- tall/vertical, flat/horizontal, by hierarchy, by function, by product, by region TALL/VERTICAL ORGANIZATIONAL STRUCTURE - A traditional organizational form, common in well-established businesses - COMMON FEATURES: many levels of hierarchy, narrow spans of control, centralized decision-making, long chains of command, autocratic leadership, limited delegation FLAT/HORIZONTAL ORGANIZATIONAL STRUCTURE - A modification of the more traditional structure - Businesses attempting to reinvent themselves use it often - COMMON FEATURES: few levels of hierarchy, decentralized decision-making, wider spans of control, shorter chains of command, democratic leadership, increased delegation ORGANIZATIONAL STRUCTURE BY HIERARCHY - Individuals at the top have more authority than those below them - The chain of command goes from top down, where each employee has a supervisor - Better define levels of authority and responsibility - Motivates employees with clear career paths and chances for promotion - Gives each employee a specialty - Rigid, can slow down innovation or important changes due to increased bureaucracy - Can make lower-level employees feel like they have less ownership and can't express their ideas for the company ORGANIZATIONAL STRUCTURE BY FUNCTION - A company can be organized according to business functions indicating what employees do - Employees are grouped by functional departments and then organized by seniority - This allows employees to focus on their roles and encourages specialization - It helps teams and departments feel self-determined and is easily scalable in any sized company - Can create silos within an organization - Hampers interdepartmental communication ORGANIZATIONAL STRUCTURE BY PRODUCT - An organizational structure can be presented according to what the business produces ORGANIZATIONAL STRUCTURE BY REGION - An organizational structure can be presented according to where the business operations are CHANGES IN ORGANIZATIONAL STRUCTURE - Two special types of organizational structures: project-based and shamrock organization PROJECT-BASED ORGANIZATION - Flexible, responsive to market demands - Everything revolves around many projects contracted and being developed simultaneously - Project managers run teams of employees focusing on individual project - Many teams operate at once, there is no need to interact with each other - Each team borrows members from different departments to complete the project (accountants, operations managers, and marketing specialists) - After the project is completed, the team is split up and reassembled to begin another project - Common in IT, construction - Human resources are filled according to a matrix -- aka. 'Matrix structure'  SHAMROCK ORGANIZATIONS - The model suggested by Irish management theorist Charles Handy in 1989 - Uses the analogy of the Irish shamrock (three-leafed clover) - According to the Shamrock model, businesses should only retain a multiskilled core - The benefits of a trimmed workforce include cost reduction, competitive advantage, increased response time - The core is concerned with the creation or delivery of a product or service - All other supporting, non-central functions are outsourced wherever possible to the periphery - The first leaf of the shamrock represents the core managers, technicians, and employees essential to the business - The second leaf Handy calls the contractual fringe because non-core activities are subcontracted out to specialist business - The third leaf consists of a flexible workforce made up of part-time, temporary, and seasonal workers APPROPRIATENESS OF DIFFERENT ORGANIZATIONAL STRUCTURES - There is no one 'correct' form of organizational structures - The nature of the business may play a role in selecting the most appropriate structure - Executive structures organizations in a way to maximize the objectives of the business - If objectives change, structures will most likely change - NOT: What is the best structure?, BUT: What are the consequences of any potential organizational structure that is selected? 2.3 MANAGEMENT IS MADE UP OF PEOPLE - Managers are the ones managing the organization - They don't do the actual work -- they have foot soldiers for that - People with a special set of responsibilities who ensure that the work of the company is performed - The managers are there to organize and think -- they get 'things done' - It is a frequent trap to start doing the job of others in order to complete some task - Management covers a range -- from top to bottom THE KEY FUNCTION OF MANAGEMENT -- planning, organizing, commanding/directing, coordinating, controlling universal PLANNING - The function includes identifying goals and determining the best course of action required to achieve those goals - Managers must set objectives - Top/senior management will establish the overall strategy - Middle managers will translate the strategy into tactical objectives - Floor managers will translate tactical objectives into operational objectives all have implications throughout the organization - Planning should be an ambition, but not impossible to achieve ORGANIZING - The function includes assigning responsibilities to the employees with detailed skill sets needed to complete the task - Managers are supposed to organize all resources, not just people - And when it comes to people, they should accept some accountability via delegation - A clear structure of the organization allows for a clear division of tasks - It's a balancing act -- too many resources tie up too much capital; too few and the organization's objectives cannot be met COMMANDING - This function includes hiring the right people for the right positions and guiding them - Involves guiding, leading, and overseeing employees to ensure that organizational goals are met - Management must make sure that employees know which duties they are to perform - It is the management's task to make sure that employees receive instruction in how they are to perform their tasks COORDINATING - Achieving a common sense of purpose without wasting resources - This function includes ensuring consistency and coordination between different parts of the organization - The management must bring together the various resources to achieve objectives - Managers must coordinate these activities, making sure that each activity is done when and where it supposed to be CONTROLLING - The function includes establishing targets for all groups, divisions, and individuals, comparing them with the goal, and taking corrective action, as needed - It is the management's responsibility to appraise performance against targets and to take action if underperformance occurs - It is just as important to provide positive feedback when things are going right - Managers have power over a given situation to achieve objectives DIFFERENCE BETWEEN SCIENTIFIC AND INTUITIVE MANAGEMENT - Deliberative thinking processes -- aka 'scientific thinking' - Intuition -- aka 'hunch' MANAGEMENT VS. LEADERSHIP LEADERSHIP STYLES -- autocratic, paternalistic, democratic, laissez-faire, situational AUTOCRATIC - Autocratic leaders -- hold on as much power and decision-making authority as they possibly can - Tend not to consult (or only minimally consult) employees when making a decision - Expect to have their orders obeyed and employees welcome the structured environment and the rewards they receive - This style is most likely to be used - When subordinates are unskilled, not trusted, and their ideas are not valued - In an organization that focuses on results and has to make urgent decisions that depend highly on the manager - Benefit: lines of authority are clear and decisions can be made quickly - Drawback: employees tend not to develop the ability to manage on their own or to make decisions PATERNALISTIC - Paternalistic leaders -- share some features with autocrats in terms of considerable authority over employees - View the employees as a figurative family and have great concern for them - Act like parents and provide employees with a sense of safety - This style is most likely to be used - When leaders want to develop total loyalty and blind trust - Benefit: employees take great pride and figurative owners - Drawback: leaders are not always objective and may\-\-\-\-\-\-\-\-\-\-- DEMOCRATIC - Democratic leaders -- involve employees in decision-making and inform them about issues that affect them - Consult employees regularly - Can produce results - Maintain the right to have the final say - This style is most likely to be used -- with skilled, free-thinking, and experienced subordinates who are highly effective - Benefit: employees love this style as it gives them a sense of empowerment - Drawback: may not always work out -- slows down decision-making, may be costly, and it requires positive 'chemistry' in the team LAISSEZ-FAIRE - Laissez-faire leaders -- give employees considerable freedom in how they do their work - Give employees considerable freedom in how they do their work - Employees are expected to solve problems on their own - Don't provide too much guidance or feedback - This style is the most likely to be used - When employees can be trusted to do their jobs because they are motivated, skilled, and educated - In cultures based around the individuals and where people can work successfully on their own - Benefits: the freedom may foster creativity and innovations - Drawback: employees' interests may diverge too far from the focus of the organization SITUATIONAL - Situational leaders -- follow the motto: different situations require different styles of leadership - Don't belive there is the best style and adapt their leading accordingly - This style is most likely to be influenced by - The subordinates (subordinates' skills, age, education, expectations, and motivation) - The decision (whether urgent, important, or consequential) - The leader ( the leader's character, values, experience, and expectations) - The environment (whether creative, standardized, repressive, democratic, or compliant) - Benefit: leaders match their style to the circumstances at hand - Drawback: the leader may come across as unpredictable or arbitrary page24image50371488 ETHICAL CONSIDERATIONS  2.4 MOTIVATION - What crucial role do leaders and managers play? - They motivate their workforce to ensure they are productive and creative - Motivation influences individuals to behave in a certain way - Combined with individual skill and ability, it results in performance - Motivation helps people - Achieve their goals - Gain a positive perspective on their private and working lives Create the power to change - Manage their own development - Build positive self-esteem POOR STAFF MOTIVATION page10image27808224 INTRINSIC AND EXTRINSIC MOTIVATION - Intrinsic motivation -- occurs when someone gets satisfaction from the activity itself, without threats or rewards from outside - Employees are more likely to be intrinsically motivated if they: - Can see that their success is a result of their efforts (more work, better results) - Have some control over their results (given a certain degree of freedom) - Are interested in the work they are doing - Extrinsic motivation -- occurs as a result of external factors (money, recognition, success) INTRINSIC VS: EXTRINSIC MOTIVATION  MOTIVATION THEORIES FREDERICK WINSLOW TAYLOR - The founder of scientific management -- a mechanical engineer, wanted to replicate scientific methods from natural to social sciences - Taylor's main beliefs were based on findings from agricultural and industrial revolution - He believed that output should be maximized in the shortest amount of time through: - Standardization of work methods - Enforced adoption of the best ways of working - Most famous for time-and-motion studies - Break the job down into its parts and measure how long it takes to complete the task - Workers hated it and went on to numerous strikes HIS APPROACH page14image28270928  ABRAHAM MASLOW - Most famous for proposing a hierarchy of human needs - Needs are arranged in terms of their importance - The most basic ones are at the bottom - Will suffer anxiety if they aren't met - Once fulfilled, they go away - Those at the top are considered growth needs - Always strive to find new ways to satisfy them - Once fulfilled, they are still there - Key challenge for managers: How do you motivate a worker? page16image28252464 SIGNIFICANCE OF NEEDS WHEN APPLIED TO BUSINESS  FREDERICK HERZBERG - Developed a two-factor theory based on - Hygiene needs -- those factors that provide dissatisfaction at work if they are not attended to - The things that are necessary for you to get started, but they don't drive you to succeed - Motivational needs -- factors get you working because you get some intrinsic reward from them page18image28137152 MCCLELLAND\'S ACQUIRED NEEDS THEORY - According to David McClelland, the following employee needs to influence their motivation - Achievement -- employees want to work on tasks where success is determined by mastery and hard work - Affiliation -- creation, and maintenance of social relationships is a strong motivational factor - Some employees like being part of a group and assuming the group's identity - If you care what others think of you, you won't make a good manager - Power -- some employees are motivated when they are in a position to encourage, influence, or teach others - They see the world as a zero-sum game - No employee neatly fits into these categories -- all have them to a degree - When managers understand each employee's need, they can tailor a motivational approach for DECI AND RYAN'S SELF-DETERMINATION THEORY - 2 types of motivation -- they don't necessarily conflict - Autonomous -- occurs when an individual has a full sense of volition and choice in what they are doing - Controlled -- occurs when an individual is doing something to get a reward or avoid a punishment - Competence -- when they are competent in a particular demand, employees feel self-satisfied - Avoid mismatching employees and competence -- build up expertise by increasing the difficulty of tasks - Relatedness -- employees need to feel connected to others, both to care and be cared for - Fostering a sense of team spirit, encouraging collaboration, and building a culture of mutual support - Autonomy -- employees do better when they feel they have some sense of control over what they are doing - Give autonomy on which assignments to take on and how to approach solutions ADAMS' EQUITY THEORY - Inputs -- affective and cognitive qualities that an employee brings to a business - Outputs -- what an employee receives from working at that particular job/company - Equity -- the balance between the inputs and the outputs  VROOM\'S EXPECTANCY THEORY - Closely related to Equity theory - Employees are motivated when they believe that their efforts will lead to good performance, for which they will be rewarded -- and that the rewards will be worthwhile/desirable - Key terms in Expectancy theory - Expectancy -- will effort lead to good performance? - Instrumentality -- will the performance produce the expected outcomes? - Valence -- are the outcomes desirable to the employee? page25image28304528 LABOR TURNOVER - Labor turnover (LTO) refers to the movement of employees into and out of a business in a given period (usually a year) - A measure of the success of a firm's retention policies and an indicator of business stability  WHY DOO STAFF LEAVE - All firms lose staff for various reasons, including retirement, death, maternity leave, health issues, employee dissatisfaction (salary,...), promotion with another organization, closure of branches, factories,..., operational changes (shift patterns,...), seasonal factors VARYING LABOR TURNOVER - Labor turnover varies between industries and regions - Some low-skilled industries routinely experience high labor turnover, such as the agricultural and leisure sectors, where jobs are temporary and seasonal - High labor turnover is of concern where: - Employees leave voluntarily - Turnover is higher than competitors' - High turnover is an increasing trend - Labor turnover is beneficial if poor staff leave and are replaced with more efficient employees, bringing new ideas and energy to the firm RECRUITMENT, IN ALL ITS FORMS - Internal -- occurs when the organization at which a position has become available recruits a person who is already within its ranks to fill the vacancy - External -- occurs when the organization taps into the outside labor market to fill a vacancy - Recruitment can be divided into three phases: identification, application, selection IDENTIFICATION page30image28184016 APPLICATION  page31image28055648 SELECTION  ETHICS - Some organizations deliberately recruit employees from socio-demographic groups that are underrepresented in their workforce to ensure more diversity - For some enterprises, this can be a direct part of their mission, ethical objectives, and CSR strategy - Still, this means that a better candidate might miss out on an opportunity because he/she is not as diverse TRAINING - Can help an employee's professional development - keep the employee up-to-date with the latest ideas and technologies - may lead to the employee finding a new career path by being reskilled -- might even prevent from losing a previously learned skill - has a significant positive influence on business, as it can improve the quality of the work, lead to greater productivity, motivate the employee, reduce labor turnover FORMS OF TRAINING - training can take many forms, including the following: induction, on-the-job, and off-the-job - other forms of training include: - cognitive training -- develops thinking and processing skills - behavioral training - Interpersonal skills -- how an employee interacts with others - Intrapersonal skills -- how they manage emotions INDUCTION - Training that focuses on integrating new employees within the organization and familiarizing them with the following - Product and services, rules and procedures, lines of authority, company culture, expectations - Ensures that the new employee will settle in quickly and start contributing right away ON-THE-JOB - When employees are trained while they are doing their normal job - Often takes the form of mentoring -- when an experienced employee guides the new employee through 'learning the ropes' - Or it can take the form of shadowing -- when an employee follows or shadows, another one to learn a skill OFF-THE-JOB - When the employee is given time off from work to attend training away from the job - Short term: Workshops, conferences, course - Long term: MBA, specialization - If the employer is willing to pay for your education, you're worth a lot to them APPRAISAL - In the past, employees were assessed through inspection - Top-down process, one-way communication, no opportunity to respond, subjective, judgmental - Focuses on the negative indicators of performance (failures, not meeting targets, etc.) - Today, an appraisal is the most common method of review of employee performance - Non-threatening, two-way communication, includes constructive feedback - Supportive, non-judgemental, fostering a positive and inclusive working environment - For employees, an appraisal can: be motivating and instructive -- employees can learn from past mistakes, help employees progress along their career path, lead to a change in career direction - For the business, an appraisal can: act as a check on performance, help to review new initiatives, be useful to record and document performance, be motivating as it formally recognizes good performances CHARACTERISTIC OF GOOD APPRAISAL SYSTEMS - If done properly, they can be costly and time-consuming - They are not directly linked to pay or promotion -- which can lead to 'backstabbing' and mercenary behavior - They are separate from disciplinary systems -- the idea of appraisal is to be supportive and positive - They require minimal paperwork -- filling out forms shifts focus from substance to form - They provide an honest exchange of views - Transparency is a must - Everyone involved should know their role and be honest regarding areas in need of improvement METHODS OF ASSESSMENT -- formative, summative, 360-degree, self-appraisal FORMATIVE APPRAISAL - Occurs during training or work of employees - Ongoing, continuous, intended to improve employee performance, typically runs in cycles (1-3 years) - The focus is on giving feedback to 'from' them SUMMATIVE APPRAISAL - Occurs at the end of the training, or at a fixed time during a year - Formal and documented - Used to measure the level of an employee's success or proficiency in meeting predetermined benchmarks - Can test knowledge and skills, and sums up different parameters - Attempt to measure employee performance according to set standards 360 APPRAISAL - Occurs when an employee receives input from all categories of people with whom they interact Most complex and comprehensive\ Involves an element of upward appraisal (boss-subordinate)\ Includes as many different perspectives as possible - Often used to evaluate the performance of top-level management MOTIVATION IN PRACTICE FINANCIAL REWARDS     NON-FINANCIAL AWARDS     SELF-APPRAISAL - Individual employees can reflect on their own performance - Can be used by itself - Usually done through a self-appraisal form - Leaves room for employee suggestions (training needs) and discussions of important areas 2.5 - Culture -- The achievements, arts, attitudes, customs, norms, social institutions, and values of a particular nation, people, or another social group. - Organizations can have their own culture, which in business is referred to as corporate culture - Organizational culture -- Similar to corporate culture - The achievements, arts, attitudes, customs, norms, social institutions, and values of a particular organization - An organization's culture will often reflect some of the cultural practices of its host country, although two organizations within the same country could also have different cultures ELEMENTS OF ORGANIZATIONAL CULTURE - Indications of the culture of an organization can be gained through: - mission and vision statements -- these inform staff about what the business is trying to achieve - the record of senior staff, e.g. in handling ethical issues -- the directors and other senior managers will be one of the main influencing factors in an organization's culture - the organization's ethical code of conduct -- this lists the dos and don'ts that must be observed by staff when dealing with external stakeholders - strategies on social and environmental issues -- these will provide a clear guide to the organization's social and environmental values and beliefs - the example set by senior managers, e.g. how they treat subordinates, how they make decisions, and how these are announced and introduced - The industry the business operates in will also influence the values and beliefs of the organization TYPES OF ORGANIZATIONAL CULTURE - Charles Handy: - Irish management scholar and theorist - Gods of Management: The Changing Work of Organizations - His work is so pervasive that people adopted his jargon when describing organizational culture - He chose the metaphor of Greek gods - Each corresponds to a different type of organizational culture HANDY\'S ORGANIZATIONAL CULTURE page15image27789344 POWER CULTURE - Exists when a few individuals retain the essential power in an organization - Control comes from these individuals and spreads across the organization - Very few rules and procedures exist - Decision-making is swift - People are judged by results, not by how those results are achieved - A web without a spider has no strength - The spider can reward or punish - Those who cannot fit in don't stay there for long or will be devoured - Dominant power cultures are often present in family businesses or merchant banks ROLE CULTURE - Refers to organizations where employees have clearly defined roles and operate in a highly controlled and precise organizational structure - Tall hierarchical bureaucracies with a long chain of command - Power stems from a person's position and a 'rule book' (corporate procedures) - Decision-making is slow and detailed - Risk-averse employees - Templesorbuildingsareoldandstablestructures - The oldest buildings in a city often house organizations with role structures\ Roleculturesareoftenfoundamongcivilservices, military, or nationalized industries TASK CULTURE - Refers to an organization comprised of short-term teams addressing specific problems - The power within a task culture shifts from person to person, depending on who leads the team - Rapidly-changing environment oriented on getting things done - Can lead to a strong team spirit, and vice versa - Teams are often created and dissolved - The strength of a net is its different strands - Crossing lines of a matrix structure - Task cultures are often found in management consultancies, construction crews, film sets PERSON CULTURE - Exists where individuals believe themselves to be superior to the organization - An organization is recognized by the people that are part of it - And those people, in turn, see themselves as separate from the organization - „Free spirits", „solo flyers" - Each specialist brings a particular experience to the organization - Person cultures are difficult to manage - The person\'s culture is a constellation of stars - Each star is unique and different - Each individual is on their own, 'an island unto itself' - Person cultures are often found in architectural studios, university departments, law firms ORGANIZATIONAL ATTRIBUTES - You sense the organizational attributes when you walk into an organization\ What is seen, heard, and felt reflects the culture\ How are offices set up? How are people dressed up? What is the overall atmosphere? PROFESSED CULTURE - You need/want to project a certain image - Slogans, statements, and logos about commitment to employees, customers, other causes page19image27846816 ORGANIZATIONAL ASSUMPTION - Insiders will often say 'this is how things are really done here', as opposed to the official way - Those who have been there the longest, understand them the best - Very difficult to understand, hard to articulate and talk about - Especially difficult to understand if you are new to the organization and want to initiate change - Unconscious, taken-for-granted beliefs, perceptions, thoughts, and feelings CULTURAL CLASHES - When individuals enter an organization or when two or more organizations merge together, „cultural clashes" can occur - Different comfort levels with diversity, different degrees of formality, different languages, different leadership styles, different orientations to tasks and to people, different practices, different senses of time  CONSEQUENCES OF CULTURE CLASHES - Consequences can be significant, the most significant being business failure - The merging companies must develop a strategic plan for managing the merger - Including harmonization of culture! - Also, if leadership changes, the new people at the top may have a different style - Early indicators of culture clash problems include - Lack of focus on the new organization's aims - Preoccupation with the merger - Sense of division - Sense of isolation - Unresponsive management - Lower productivity - Higher labor turnover - Various types of conflict in the workplace - Decreased profitability - Bankruptcy or failure ORGANIZATIONAL CULTURE AND INDIVIDUALS - Individuals influence cultures, and vice versa - Culture can influence everything that happens in a business - High-performing cultures attract high-performing individuals - Energy can be transferred and transformed - You can feel the energy in an organization - Too many meetings, too many e-mails, overworking and hustle 2.6 COMMUNICATION - How a business communicates with its stakeholders can often define its path to success - Communication is integral to all business functions - Successful businesses communicate effectively with both internal and external stakeholders BUSINESS COMMUNICATION - How messages spread through an organization can tell you a lot about its nature and workings. - Formal communication -- officially and formally recognized methods channeled through the organizational structure - E.g. Memos, meetings, bulletin boards, e-mail, chat - Informal communication -- the various ways in which information is casually disseminated - 'getting the word out' and 'Watercooler Talk' shows the power of networking - Produces rumors and gossip - Barriers to communication -- the various impediments that prevent communication from happening the way it should - It can take different forms: linguistic, psychological, structural VISUAL COMMUNICATIONAL - Relies on sight and can be very effective (it's permanent, recognizable, and immediate) - Formal: presentations, videos, noticeboards, signs, sign language, symbols, maps - Informal: body language, gestures WRITTEN COMMUNICATION - Relies on the written word - Formal: reports, letters, notices, bulletins, forms, press releases - Informal: memos, emails, texts, blogs BARRIERS TO COMMUNICATION - There is often a disconnect between senders and receivers of messages - Barriers to communication can be very costly - Communication styles, conflicts in the workplace, cultural differences and language, dissatisfaction or disinterest with one's job, inability to listen to others, lack of transparency and trust MAIN BARRIERS TO COMMUNICATION COMMUNICATION STYLES - Different people communicate differently - Chatty vs. quiet, direct vs. indirect, eloquent vs. vulgar - Even if they speak the same language the same language, it seems as if they speak a different language CONFLICTS IN THE WORKPLACE - Working together, even if done properly, can brew conflict - Some organizational structures are set up in such a way to encourage conflict - Often perceived as conflict = competition - In such situations, communication becomes difficult - People are not open to hearing the message being conveyed CULTURAL DIFFERENCES AND LANGUAGES - Sometimes, the languages, with all their intricacies, are simply different - Even though English is the lingua franca, people's proficiency in it matters a great deal - Cultural differences also matter -- low-context vs. high-context cultures DISSATISFACTION OR DISINTEREST WITH ONE'S JOB - How many people are happy at their jobs? - Do you work for the money or out of joy? - Unhappy employees communicate ineffectively, amplifying dissociation. INABILITY TO LISTEN TO OTHERS - Why do you listen? -- To understand or to reply? - Effective listening is a skill! -- Requires active listening - Don't assume anything! -- Pay attention! LACK OF TRANSPARENCY AND TRUST - Very few organizations are 100% transparent. - Managers don't need to 'open their cards' -- sometimes it's paramount to keep sensitive information under wraps. - Employees have the right to privacy in certain areas CV - A document containing all relevant information about you - No page limit, usually 2-3 pages long - Goes through your whole life -- academic accomplishments, work history (if any), awards, skills - Some basic sections include -- your contact information, education,... RESUME - Document tailored to a specific job application, only listing what's relevant for the vacancy - Comes from the French words for 'summary' - If it's a resume, it should be short -- 1 page max - A cover letter often accompanies the resume - Some basic sections include -- contact information, including job title, resume summary or resume objectives, and work experience...  2.7. EMPLOYER/EMPLOYEE RELATIONS - Industrial relations -- a term that describes the relationship between employers and employers - Industrial dispute -- occurs between trade unions and employer representatives. - NB: none of the following terms are directly industry-related - Situations are very different from country to country -- it depends on laws/regulations, customs, local trends EMPLOYER/EMPLOYEE REPRESENTATIVES - Officials of trade unions often act as representatives of the workers' interests during negotiations with employers. - Negotiations -- a bargaining process between two or more parties, each with its viewpoint, and seeks to find common ground, reach an agreement, and resolve conflict. - Collective bargaining -- the process by which wages and conditions of employment are negotiated between employers or associations of employers and workers' organization - Negotiating separate agreements with every employee would be time-consuming and inefficient. - Agreements made on a collective basis are usually preferred by both sides - Individuals in a weak bargaining position may join a trade union to increase their strength - Employers may negotiate as a group at an industry level EMPLOYEE OBJECTIVES - Employees are likely to have one or a combination of the following objectives. - Increased pay rates and improved employment packages - Better working conditions and job security - Insurance (medical, life, etc...) - Better training opportunities - Recognition of trade union rights - Protection from harassment at work - Greater participation in decision-making - Flexible working practices EMPLOYER OBJECTIVES - Employers are likely to have one or a combination of the following objectives. - Negotiating separate agreements with every employee would be time-consuming and inefficient. - Agreements made on a collective basis are usually preferred by both sides - Individuals in a weak bargaining position may join a trade union to increase their strength - Employers may negotiate as a group at an industry level LABOR (TRADE) UNIONS - Labor (trade) unions -- an organization of working people with the objectives of improving the pay and working conditions of its members and providing them with support and legal services - 'Power through solidarity' has been the basis of union influence, and this is best illustrated by their ability to engage in 'collective bargaining' - negotiating on behalf of all of their members in a business, putting workers in a stronger position than if they negotiated individually to gain higher pay deals and better working conditions - Individual industrial action -- one worker going on strike, for example, is not likely to be very effective - Collective industrial action could result in much more influence over employers during industrial disputes - Unions provide legal support to employees who claim unfair dismissal or poor conditions of work - Unions pressurize employers to ensure that all legal requirements are met - E.g., Health and safety rules regarding the use of machinery - The primary causes of conflict between workers and management include the following. - Change, different interests, different values, external factors, insufficient resources, poor communications, poor performance CHANGE - Can be driven by either internal or external factors - Change often drives stress - Introduction to new technology - Change in working habits - It's a two-way street; it doesn't affect one group only page14image28169712 DIFFERENT INTERESTS - Two opposing interests can never be entirely reconciled - Employers: - Full stake in the business - Concerned with the bottom line - Give priority to business goals - Employees - Much lesser stake (if any!) - Concerned with wages, worker conditions, etc. - Put their rights and needs first. DIFFERENT VALUES - Individuals see the world differently. - Within any population, there is discrimination of all forms, different political beliefs, cultural diversity, and different religious affiliations - these are replicated at work. - Lack of tolerance, acceptance, and understanding of differences can cause a conflict. EXTERNAL FACTORS - Anything coming from outside can disrupt the workplace - Changes in the economic environment -- can affect the resources available - Migration -- can bring in a new wave of workers unaccustomed to the dominant culture - Political changes -- can lead to new laws and regulations INSUFFICIENT RESOURCES - Scarcity exists even among organizations -- no business has unlimited resources. - Management often must decide as to where to put available resources to best use. - Increase workers'salaries? - Invest in new products/services? - Distribute dividends? - Employees perceive this issue as having to compete with everyone for the available resources. - If there isn't enough money to go around, somebody will not get their demands honored. POOR COMMUNICATION - Lack of communication between workers and managers can create a misunderstanding or an outright conflict.  - As healthy as the communication can be, misunderstandings are bound to arise! POOR PERFORMANCE - Workers may not do their jobs properly because of a lack of skills, interest, commitment, etc. - It can happen at all levels of the organization - It will have an impact on everyone else! - If the problem is addressed properly through reprimanding, demoting, or sacking a conflict is bound to occur CONFLICTS IN THE WORKPLACE - Conflicts occur when people perceive a threat to their needs, interests, or concerns - Most commonly refers to conflict between management and organized groups of workers (pay,benefits) - They can help force necessary changes within the work environment - Various sources of conflict exist page21image27905488 - If employee representatives are unable to reach an agreement with employers in negotiations, they may enter into an industrial dispute using several sanctions to pressure the employer - Collective bargaining - Occurs when employees of an organization work together when bargaining with management about wages and work conditions, in situations where workers are unionized, and union representatives assist with the bargaining process - Work-to-rule - Employees follow rules and procedures to the letter, e.g. refusing to undertake activities not directly specified in their contracts, putting in the minimum effort necessary, which may slow down work or decrease productivity - Strike action - Employees withdraw their labor and refuse to work in response to the breakdown of collective bargaining - A strike may be: - For a fixed period e.g. one-day - Rolling (a sequence of strikes) - Full-time, until the dispute is resolved - Employees have been known to resort to other, less-known approaches to sanction the employers, which may include actions such as - Go slow - Employees deliberately work slower, below their potential, reducing productivity and output, e.g. following every health and safety requirement - Overtime bans - Workers refuse to do overtime - In some industries, such as transport, this is extremely disruptive as overtime is required to offer acceptable service levels - Employers often use highly skilled, specialist staff to conduct negotiations and can call on additional specialists, such as lawyers, to prevent industrial action and put pressure on employees through the following - Collective bargaining - Employers seek to maximize their position using skilled negotiation techniques. - Threats of redundancies - Threaten the workforce with compulsory redundancies if workers don't accept management's proposal - Changes of contract - May not renew contracts unless employees accept different, and probably inferior, terms and conditions or employment, even though unilateral changes are severely limited by law - Lockouts - A work stoppage initiated by the employer which bans employees from the employer's premises - Closure - Permanent or temporary shutdown of a site or the business altogether WHICH SIDE IS STRONGER - the power and influence of employers and unions ina n industrial dispute will depend on a number of factors  APPROACHES TO CONFLICT RESOLUTION - Just as there are conflicts, there are also ways to solve them - Conciliation (mediation) and arbitration - Employee participation and industrial democracy - No-strike agreement - Single-union agreement CONCILIATION AND ARBITRATION - Conciliation -- occurs when a third-party conciliator mediates between management and labor and offers ideas that may help the two sides come to an agreement - Voluntary; side sin the dispute must agree to conciliation - The conciliator has no power to impose a solution but aims to assist the parties to reach a settlement - Arbitration -- occurs when a third-party arbitrator mediates between management and labor - Unlike in conciliation, the arbitrator has the authority to decide how the conflict will be resolved - The disputing parties agree to the arbitrator\'s appointment and accept that the arbitrator\'s decision will be final and legally binding - Most countries have organizations (often government-sponsored) that act as independent conciliators and arbitrators to resolve disputes - The advantages of conciliation and arbitration are: - Making negotiations less confrontational - Improving communications between the parties - Defusing disagreements as early as possible EMPLOYEE PARTICIPATION AND INDUSTRIAL DEMOCRACY - Employee participation is a generic term for all forms of employee involvement in decision-making - Employee participation can take many forms: - Project teams or quality circles in which employees work on projects or tasks with responsibility delegated to the team - Suggestion schemes allow employees to provide managers with new ideas and improvements - Multi-channel decision-making processes - Decisions result from communications upwards, sideways, and in many other directions within the organization - Kaizen or continuous improvement programs NO-STRIKE AND SINGLE-UNION AGREEMENTS - No-strike agreement - an agreement that rules out the taking of industrial action. In its place is an agreed method of dispute resolution, such as arbitration - Single-union agreement - Gives one trade union sole bargaining rights in respect of all employees in an organization - This simplifies collective bargaining as managers only have to negotiate with the representatives of that single union